Tag: palladium

Platinum was once the most precious of metals. For decades, it traded at a premium to gold. The other platinum group metals – palladium and rhodium – barely registered on investors’ radar screens. Platinum lost its crown to gold in 2015. It was overtaken by the other Platinum Group metals (PGM) metals in recent weeks. Given that platinum, palladium, and rhodium demand is largely driven by automobile manufacturing and the production of catalytic converters, one of these things is likely true; platinum is currently undervalued, or the other two have gotten ahead of themselves. Which one is the correct assessment will depend on whether the current optimism for economic growth […]

Gold Spot price has rallied minimally following the break to a new low, thus far halted at the declining 200-day MA. Interestingly, one might have expected Gold to rally more forcefully in face of major U.S. index declines last week. Resistance remains above at 1,200 and 1,250 but the trends remain down even at these levels and well under the 2005 uptrend. Weekly and monthly momentum models remain negative and flat. The downside target at 1,000, the support from 2008-2009, remains in place.

Bear market declines are in place for nearly all the commodities except for a strong Palladium.. Kickback rallies (contratrend rallies) are in place or in progress; some already may be failing. What to watch for is a test of the lows, which may result in a further breakdown, and lower lows, or contrarily, a decline that fails to achieve the former low, thus holding at a higher level, which could suggest the potential for another rally over the weeks / months ahead.

In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week’s strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,300.62, down $2.58 per ounce (0.20%). The NYSE Arca Gold Miners Index fell 0.28% on the week.

As indicated previously, both platinum and palladium have broken out of a long trading trange. The following chart shows how palladium is holding up very well above the support line (which once was very strong resistance), and is even building up strength. The law of supply and demand will kick soon kick in, taking the two grey metals higher. In particular, palladium could surprise many with much higher prices in the (near) future.

As a general rule of thumb, we all know that fundamentals are not always reflected in the charts. It mostly takes some time until the price follows fundamentals. For palladium in particular, there is a very high probability that its chart starts reflecting the strong supply/demand fundamentals.

What’s important to recognize as a potential investor is that the deficit for both metals isn’t letting up, especially for platinum. Overall, platinum demand is expected to be greater than ever before, reaching a record 8.42 million ounces this year. And this while supply continues to decline.

In his latest interview, Rick Rule shares extraordinary insights based on four decades of investing in the resource markets. He answers two highly relevant and topical questions. Is it wise to sell some gold and silver in order to move into platinum and palladium? With expected inflation and real negative rates, is it smart to hold cash?

Platinum and palladium became very hot. The prices have gone much higher in the past couple of weeks. Interestingly, this happens at a time when gold and silver are trading lower. The sentiment in the gold and silver versus platinum and palladium is reaching extremes, as shown in the latest sentiment indicators.

Platinum and palladium are the less shiny precious metals. With most attention going to gold and silver, the PGM’s are less understood. This infographic shows some facts that everyone with an interest or involvement in precious metals should know about.